In the earlier days what was considered to be a luxury has now metamorphosed into a necessity. Yes, we are talking about cars. “The wheels”, be these big or small, have become an integral part of every person’s life.
However, not everyone can afford to buy their dream car by settling the full amount. In fact, most people prefer to opt for a car loan which is one of the best ways to own a car without breaking the bank.
But, car loans don’t come cheap. The finance organizations are well aware of the common man’s desire to own a set of wheels. Thus, they try to make the most of this situation. Wondering how? They design the most lucrative car loan packages with hidden costs and whatnot, and many vulnerable souls fall prey to this business strategy.
Scary, isn’t it? Well, don’t worry. You just need to have some smart strategies of your own when negotiating the car loans, to strike the best deal. Take a look at some of the time-tested strategies that have really worked out.
1. Shop around for the Best Lender: All banks and financial organizations offer car loans to interested people. However, it should be noted that each organization has a diverse kind of working the interest rates. So, many times the interest rates for car loans may vary from one lender to the other. Research around a bit will give you an idea of the lenders who are willing to give car loans at the lowest interest rates. You can also compare loans online. Equipped with this knowledge, you can go ahead and book your dream car.
2. Negotiate the Price of the Wheels: It is quite imperative that when you go to buy a car, you already have an idea about the amount that you are willing to shell out every month. So, don’t let the car salesman lure you to something that is way beyond your budget. Instead, try to negotiate the price of the car you prefer. Make sure not to mention the EMI that you have in mind. Most often than not, the car salesman will try to negotiate the price of the car in accordance to it, thus leading to a poor deal for you. So, focus on negotiating the price of the car rather than discussing the monthly installments.
3. Analyze your Credit Reports: Banks and financial organizations check the credit report of a person before agreeing to offer a loan. Thus, before you set out requesting a loan, make sure to check your credit reports and ensure that there are no discrepancies in it. Even a small issue in the credit report would cause the banks to up their interest rates for you. Also, if you are aware of your credit profile, you can be sure that the financial organizations do not try to take undue advantage by quoting high rates.
4. Opt for a Short Loan Tenure: There is no denying the fact that a car is an asset whose value depreciates with each passing year. Hence when you opt for a car loan, make sure not to extend the tenure of the loan for more than 3-5 years. Remember, the shorter the tenure, the lower the amount of interest that you shell out. According to financial experts, a longer tenure for the car would mean that you end up paying significantly more for it.
Car dealers also try to rip their customers by adding in various extras like gap insurance, extended warranties and what not. Believe it or not, these are a smart way for them to make higher profits.
0 comments:
Post a Comment